Expansion of EV shares in China and Europe is slowing down
Estimated battery prices have risen to little over $150 per kWh for the first time due to supply restrictions brought on by underinvestment and the conflict in Ukraine (BNEF). This is similar to levels in 2020. The decreasing trend is unlikely to take up this year due to continuously high battery materials prices and impending shortages. This implies that even if more cheap models are released, price parity with conventional automobiles will be delayed and financial help for mainstream drivers will still be required. The decrease in government assistance in the mentioned nations clashes with this. Higher charging fees also increase expenses, particularly in Europe where an increasing percentage of potential EV drivers lack access to home charging.
However, from a corporate perspective, an even greater push for EVs in Europe in 2023 is expected as companies must disclose emissions and work to hasten the decarbonization of their fleets of vehicles. After 2025, several nations may even mandate the use of electric vehicles for business automobile leasing. Sales of EVs will also continue to be influenced by production. The supply of semiconductors has increased, but EVs still need more chips. Additionally, the shortage of batteries also explains why automakers like GM, Ford, and Tesla are cooperating with mining firms.
Source: ING
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